China News - 14 July 2022
International
Chinese students now biggest foreign market for UK universities. Chinese students are now by far the biggest overseas market for UK universities, with the number of applicants up almost 60 per cent in three years to a record 31,400, according to the university admissions service UCAS. Nick Hillman, director of the Higher Education Policy Institute, said: “To me, it’s a great thing that so many Chinese people want to study in the UK, but it does put our universities at serious risk of shifting geopolitics.” The Telegraph, 14 July
Tech competition
White House wants transparency on American investment in China. The Biden administration says it supports congressional action to require US companies to notify the government before investing in critical sectors in China, endorsing a bipartisan push for transparency that pits business interests against national security. The White House has achieved a consensus on an approach to legislation that mandates notification but empowers the president to go further: to develop regulations restricting and even prohibiting what officials say would be a broad set of investments in a narrow range of sectors. The Washington Post, 13 July
Biden team see slimmer bill key to chips funding. Bloomberg, 13 July
Dutch confirm talks with US on chipmaking-gear nan on China. The Dutch foreign minister confirmed that the Netherlands and the US are holding discussions on blocking ASML Holding NV from selling to China technology used in making a large chunk of the world’s chips. Bloomberg, 14 July
Taiwan says Foxconn needs govt approval for any China chip firm investment. The world's top contract electronics maker plans to invest 9.8 billion yuan ($1.46 billion) in embattled Chinese chipmaker Tsinghua Unigroup to further advance its push into semiconductors. Reuters, 14 July
Australian PM Albanese ‘very confident’ there will be no Chinese bases in Solomon Islands. Albanese met Solomon Islands prime minister, Manasseh Sogavare, on Wednesday to discuss regional security and climate change, as well as the leaders of Fiji, the Federated States of Micronesia and Samoa in separate bilateral meetings. The prime minister of Solomon Islands also guaranteed there will never be a Chinese military base in his country, saying that any such deal with Beijing would undermine regional security. The Guardian, 14 July
Hong Kong activist ‘Grandma Wong’ jailed for eight months over pro-democracy protests. A city magistrate jailed Alexandra Wong for eight months on Wednesday over two counts of unlawful assembly during a protest in August 2019. Grandma Wong, as she was affectionately known, was a familiar presence at the protests. The Guardian, 14 July
Christine Lee steps back from companies after MI5 ‘Chinese spy’ allegations. MI5 said Ms Lee had sought to influence parliamentarians on behalf of China’s ruling Communist Party - she has yet to resurface following the allegations. Birmingham Live, 14 July
China, Russia military activity near Japan up 2.5 times since Ukraine. Nikkei Asia, 14 July
Economy & tech
UK steelmakers outraged at plan to ease anti-dumping measures on China. The proposal to revoke existing duties on Chinese high-fatigue performance reinforcement bars, which is subject to a 30-day consultation period before the authority issues its formal recommendation to the government, triggered outrage from the steel industry. They warned the proposal risks a flood of cheap imports and threatens hundreds of jobs in the sector. FT, 13 July
China’s Big Tech companies cut back on strategic investments as Beijing’s scrutiny continues. China’s Big Tech companies are paring down their strategic investment units, in line with efforts to reduce new acquisitions because of Beijing’s continued scrutiny of the sector. Internet giant Tencent has downsized its investment department and made just 32 investments and acquisitions in the first half of this year, compared with 129 in the same period in 2021. SCMP, 14 July
SEC chief casts doubt that a deal can avert delisting of New York-listed Chinese stocks. US and Chinese officials have been negotiating for more than two years to ensure staff from the Public Company Accounting Oversight Board can access the audit papers of Chinese companies traded in the US. Bloomberg, 14 July
China readies $1.1 trillion to support Xi’s infrastructure push. China is making 7.2 trillion yuan ($1.1 trillion) in funds available for infrastructure spending, a decisive shift away from a focus on controlling debt toward supporting a lockdown-ravaged economy. Bloomberg, 14 July
Homebuyers in multiple Chinese cities go on mortgage strike over delayed projects. Caixin, 14 July
Long reads & opinion
How China wants to replace the US order. What began as a trade war and a tech war between Beijing and Washington is now an ideas war. Michael Schuman. The Atlantic, 13 July
Xi Jinping has nurtured an ugly form of Chinese nationalism. It may prove hard to control. The Economist, 14 July
How COVID-19 and the war in Ukraine could change EU-Taiwan relations. Janka Oertel. Brookings, 13 July
‘Exponentially’ risky China leaves venture capital funds starved for cash. Beijing’s tech crackdown and heightened political risk are freezing fundraising rounds for small and midsized groups. FT, 14 July